Description

Insurance that covers the risk of the need for care. In the event of a claim, the policy provides financial or other benefits in order to guarantee all or part of the necessary care. The benefits generally cover both in-patient and home care. Usually state support for providers of agricultural care insurance is required, since premiums are not usually sufficient to cover costs after structural change.

In developing countries and emerging economies, as elsewhere, other family members are finding it increasingly difficult to care for older relatives. Establishing a statutory care insurance scheme that includes farmers reduces the risk of an existential threat to the farm in old age or if the farmer becomes incapacitated.

Requirements

• (Emerging) Insurance industry
• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Close cooperation and knowledge sharing with farmers' organisations
• High proportion of the working population formally employed
• Open-access to all farms, regardless of size and location
• Skilled / specialised personnel to man the respective institutions / provide the respective services
• Regulatory framework

Possible Negative Effects

• Lack of qualified care staff
• Discriminates against the rural population compared with the urban population